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Basically I have two scalar UDFs that output the same data, one that uses a cursor and one that uses a recursive CTE. I want to determine which one should be used and discard the other; I'd prefer to make this decision based on actual performance numbers. I'm also curious how much of a difference there is between the two.

How can I benchmark the performance of these UDFs to figure out which one is faster?

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'Good/Best' are considered to be subjective questions, that is why I re-framed your question. –  Coder Hawk Jan 20 '11 at 9:09
    
In this particular case, its not about the UDF; whether CTE or Cursor causing the performance. You are free to post both UDF's definition here, so that experts can look at it and suggest work arounds. –  Coder Hawk Jan 20 '11 at 9:11
    
@Sandy, posting the udf definitions sounds like it would lead to qualitative analysis, which is definitely not what I'm asking for. I want to base this decision on the cold hard truth of raw performance numbers only. –  Factor Mystic Jan 20 '11 at 15:35
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The SQL Profiler, execution plan, IO/Cpu statistics are your best friend at checking the performance of your code. You will see if there are any differences in performance between the 2 versions of functions.

In this question - Tuning exercises - you can find some basic and advanced references about tuning.

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